LEGAL TRENDS - Spring 2009

There is a great deal going on in the world of workers’ compensation, both locally and nationally.  I hope the following information assists you in navigating this world in a way that maintains the stability of the system to the betterment of the employers and employees of our state. We’ll start with what is going on at the State House on Smith Hill, move down the street to the Garrahy Judicial Center and then on to Washington, D.C.

There have been over fifty pieces of legislation relating to workers’ compensation introduced this year at the Rhode island General Assembly. The objectives of the bills range from increasing benefits and changing procedures to removing reforms. Many of the proposed changes are dramatic and could impact the stability of our well functioning workers’ compensation system.

Legislation is generally heard and considered at the state level by the House and Senate Labor Committees. The House Labor Committee continues to be chaired by Representative Arthur Corvese of North Providence. There is a new Senate Labor Committee Chair, Senator Paul Fogarty of Burillville, Gloucester and North Smithfield. Both committees have already held hearings on workers’ compensation legislation. Further hearings are expected. The leadership of both committees has publicly stated that they will await the recommendations of the Workers’ Compensation Advisory Council before passing on the proposed legislation.

That said, the Workers’ Compensation Advisory Council is scheduled to meet in early April. A report of the Special Joint Commission on the Underground Economy and Misclassification of Workers is expected. In addition, Advisory Council subcommittee reports on the immigrant worker, the interplay of TDI as it relates to workers’ compensation and YES/RI will be presented.

The "Special Joint Commission on the Underground Economy and Misclassification of Employees" has been appointed and has begun meeting.  The Commission is chaired by Chairman Corvese and Senator Christopher Maselli. The Commission is presently engaged in discovery, i.e. hearing from the various stakeholders on the issue to include the Department of Revenue, the Department of Labor and Training, the Department of Attorney General, labor unions, business groups and professional societies such as certified public accountants. It is hoped that legislation will be proposed by the Commission and passed by the legislature to curb the abuse that exists in these areas.

At the Court, the pre-trial calendar remains at twenty-one days from initial filing to hearing.  Resolution continues to occur in the vast majority of cases at the pretrial level. Last year, the number of petitions filed at the Court increased for the first time in three years.  This statistic is remarkable in that claims are down substantially.  We are proud to report that the Beacon share of the petitions, with an approximate 65% market share, is at 31%.

Attorney Robert Ferreiri was recently appointed to the bench, filling the position of Judge Rotondi who retired from full time service. Judge Ferrieri has a wealth of workers’ compensation experience and he has hit the ground running.  Both Judge Rotondi and retired Chief Judge Arrigan continue to assist the Court when needed. All of the judges continue to work hard in maintaining a fair and efficient system.

The Rhode Island Supreme Court recently rendered a decision of some import.  In the case of Mumma v. Cumberland Farms, the Court sustained the Workers’ Compensation Court’s finding that the “gate” of 312 weeks applies to employee’s working at suitable alternative employment.  As more time passes from the reforms of 1990 and 1992, more cases will test the substance of those changes.  We can only hope the Courts will continue to sustain these reforms to the betterment of our state’s economy.

Finally, national issues are impacting our world in a significant way as well. The Centers for Medicare and Medicaid Services (CMS) within the Department of Health and Human Services has issued guidance on how to best protect Medicare’s interests in the area of workers’ compensation and other areas of insurance.  Workers’ compensation professionals will recall the insertion of the Medicare Secondary Payer Act into the settlement process some time ago.  More recently, Section 111 of the Medicare, Medicaid and SCHIP Extension Act of 2007 was passed to help Medicare implement the Medicare Secondary Payer Act.  The extent to which this will impact the claims process is unclear at this point, but the issue warrants the close attention of the educated workers’ compensation professional.

We hope the above assists you in understanding the goings-on in workers’ compensation.  As always, we appreciate the opportunity to serve you in any way we can.